ECB to approve Greek banks' request to resume dividend payment after 16 years, sources say (updated)

Alpha Bank SA

05/06/2024 12:50

(Adds quotes, detail, paragraphs 2-7)
       ATHENS, June 5 (Reuters) - The European Central Bank is
expected to approve a request by Greek banks to resume the
payment of dividends after 16 years, four bankers told Reuters
on Wednesday, a further sign of the sector's rebound.
    The Greek banking sector is returning to normality after
three recapitalisations that led to their nationalization in the
previous decade, when the country was rocked by a financial
crisis that broke out in late 2009. 
    In recent years, banks have cut their Non Performing
Exposure (NPE) ratios to below 6% from 45% in 2016 and have
reduced state participation. They have turned profitable and
want to distribute dividends worth up to 30% of the 2023
profits.
    Senior bankers told Reuters that the ECB will respond
positively in the coming days to their request.
    "We don't expect any obstacles over the distribution of
dividends, we expect to get the green light from the ECB in the
coming days," one of the bankers told Reuters on condition of
anonymity.
    An ECB spokesperson declined to comment on the issue.
    Greece's four biggest lenders-- Eurobank  EURBr.AT ,
National Bank  NBGr.AT , Piraeus Bank  BOPr.AT  and Alpha Bank
 ACBr.AT -- have announced total profits of about 3.5 billion
euros in 2023 supported by high interest rates and strong
economic growth.  

 (Reporting by Lefteris Papadimas, Editing by William Maclean)
 ((renee.maltezou@thomsonreuters.com; +30 210 3376439; Reuters
Messaging: renee.maltezou.reuters.com@reuters.net))